Posted on 11/13/2003 9:34:40 PM PST by lewislynn
Driven by the jobs sector, local foreclosures jump Dallas County leads in volume, Collin County in percentage rise
11:19 PM CST on Thursday, November 13, 2003
By STEVE BROWN / The Dallas Morning News
A sluggish economy took its toll on North Texas homeowners in 2003.
More than 28,000 residential properties were posted for foreclosure during the year.
That's an increase of 34 percent from 2002 and a huge 81 percent jump from 2001, according to statistics released Thursday by Foreclosure Listing Service Inc.
"Foreclosure activity, like many other economic indicators, is driven by the employment sector," said George Roddy, president of the Dallas-based statistical firm. "Until we see some significant growth in jobs, foreclosure postings will continue to be high."
But Mr. Roddy said he doubts the number of homeowners in default will continue to grow as fast.
"I think we are at a plateau for a period of time, but that will be determined by how long the interest rates remain at current levels," he said. "If we see a 1.5 to 2 percentage jump in mortgage rates in the next year or two, we are going to be having more problems."
For December, foreclosure postings were up 29 percent in the four-county area with 7,608 properties tagged for forced sale.
Not all of the properties posted for foreclosure sale each month will be sold. In almost six out of 10 cases, the lender and property owner will reach a new payment agreement or the owner will agree to hand the deed over to the lender without the property selling on the county courthouse steps.
While Dallas County has had the largest volume of foreclosure postings this year –13,681 homes – the biggest increase in home loan defaults has been in Collin County.
That's no surprise because Collin County neighborhoods have been hardest hit by layoffs in the high-tech and telecommunications industries.
Collin County residential foreclosure postings were up 57 percent this year and rose by a staggering 171 percent from 2001, according to Foreclosure Listing Service.
By comparison, foreclosure postings were up 31 percent this year in Dallas County and 30 percent in Tarrant County.
Most of the homes threatened for foreclosure are low or medium-priced properties.
Almost 90 percent of the residential postings in North Texas this year were valued at $200,000 or less.
"These are not mansions," Mr. Roddy said. "It shows that the foreclosure phenomenon affects everybody, but mostly the middle class."
So far real estate agents say they haven't seen a huge increase in foreclosed homes on the resale market.
"We have a few, but not many," said Mary Francis Burleson, president of Ebby Halliday Realtors. "It's nothing compared to what it was in the 1980s.
"But we are in a huge market, and you always are going to have foreclosures," she said.
E-mail stevebrown@dallasnews.com
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